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Question1 Xinyi has seen the value of the Euro change from $1.014 to $1.038 against the US Dollar in the last three months. In this case, the US Dollar has ___________________ and the Euro has ___________________. appreciated; depreciated depreciated; depreciated depreciated; appreciated appreciated; appreciated cannot determine without further information about other currency pairs ResetMaximum marks: 1 Flag question undefined

Options
A.appreciated; depreciated
B.depreciated; depreciated
C.depreciated; appreciated
D.appreciated; appreciated
E.cannot determine without further information about other currency pairs
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Step-by-Step Analysis
Start by identifying what the quoted exchange rate tells us. The price of 1 euro is given in U.S. dollars. If the euro price rises from $1.014 to $1.038, it costs more dollars to buy one euro than before, indicating that the U.S. dollar has weakened relative to the euro and the euro has stre......Login to view full explanation

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